A Set of Trading Rules
There’s a post on the Kirk Report blog which offers up 12 Trading Rules. In general terms I agree with the majority of the rules. The are two in particular I thinks are extremely good rules to live by.
“Loss of opportunity is preferable to loss of capital.” (#1)
There will always be another trade coming around the bend. Do not feel like you need to catch each and every one. If you do you’ll just end up pressing and putting on trades that aren’t very good ones. Be patient. If you miss the entry for a trade, don’t go chasing it and getting in at a more risky point. If it’s a trend trade, chances are you will be given the opportunity to get in at a future time at a better risk point. If not, wait for the next set-up.
“Don’t carry a sizeable position when traveling” (#8)
I once made the mistake of leaving a position on while I was travelling. Between the time I left the screen for the airport and the time I got to my hotel room the markets had moved against me enough to pair my position profits back by about 80%. Needless to say, I wasn’t a happy camper. 
The one Rule that I sort of disagree with is: “Trade quietly – with the exception of a mentor, tell no one about your positions, profits, or losses.” (#7)
I agree with the general idea being expressed. Bragging about your profits puts you in a bad position. It can quickly shift you away from the focus on trading well to being right. You can also end up offering up trading ideas with friends and whatnot, which can end very badly.
My concern with the Rule, though, is the part about not talking with your family about your trading. That can be dangerous. If you’ve read The Psychology of Trading, Brett Steenbarger’s excellent first book, you may recall the chapter in which a trader hides the fact that he’s been losing money from his spouse. No surprise, that caused all kinds of problems. While it may not be a great idea to run your mouth off about your trading performance, it’s a worse idea to hide it.
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